Sustainability REPORT 2010 - Kimberly

Walking
the talk
Sustainability REPORT 2010
Australia & New Zealand
LEadING IN
SUSTaINaBILITY
WE VALUE THE INTEGRATION OF
ENVIRONMENTAL, SOCIAL AND
ECONOMIC CONSIDERATIONS IN
DAY-TO-DAY BUSINESS DECISIONS.
IT’S ESSENTIaL WE CaRE
At Kimberly-Clark we pride ourselves on leading the world in
Our Sustainability policy states: Kimberly-Clark Australia
essentials for a better life. Essentials such as the best wipes
believes that corporate social responsibility and sustainability
and nappies for your precious baby, the best in health care
are best achieved by embedding the following into all
equipment and supplies when you’re in hospital and the highest
operational aspects of our business:
quality tissue and washroom products whether you’re at home,
• Core values
on a plane or in a 5-star hotel.
• Corporate codes of ethics
• Policies, procedures and practices that deliver benefits
We don’t want to just provide the essentials for a better life,
to the company’s people, to customers, to consumers, to
but also strive to protect those essential elements that make
the community and to the environment and that result in
life better. We are driven by a desire to protect our environment,
responsible and ethical business conduct (See page 55
look after the communities we operate in, treat our staff with
for more detail)
the utmost respect and keep them safe when they’re at work.
In doing so, we are making every effort to ensure we have a
Each year, we will continue to report back on our progress
sustainable business for generations to come.
against our objectives, with the aim of achieving world-best
practice in sustainability.
• Achieved Forestry Stewardship Council (FSC) Certification,
the most widely recognised and respected global certification
for our locally made Kleenex® range, including Kleenex®
Facial Tissues, Kleenex® Cottonelle® Bath Tissue,
Viva® Paper Towel and our Wondersoft® and Thick &
Thirsty® ranges.
• Became member of WWF’s GFTN, a global network of more
than 300 companies, communities, NGO’s and entrepreneurs
in more than 30 countries around the world, working towards
one common goal: a sustainable future for the world’s forests
®
and for the people and economies that depend upon them.
• Joined the Sustainability Advantage program, an initiative from
the Department of Environment, Climate Change and Water
NSW (DECCW) helping over 480 organisations to focus their
efforts on delivering the best results for both their business
and the environment.
01
EVERY
daY
aROUND ThE WORLD
1.3 PEOPLE IN
BILLION
150 COUNTRIES
RELY ON KIMBERLY-CLaRK
PROdUCTS TO
CaRE
FOR
ThEMSELVES
aNd THOSE aROUND ThEM
GLEN WaTTS
MANAGING DIRECTOR AUSTRALIA & NEW ZEALAND
At Kimberly-Clark we talk a lot about values. Our values are:
remain focused on the things that are important, building
• Authentic
a sustainable business model, not short-term profits.
• Accountable
• Innovative
For us that focus has seen us achieve great things in 2010.
• Caring
We’re proud to have attained Forest Stewardship Council
(FSC) Certification for our locally made Family Care tissue
What do these have to do with sustainability? Everything.
products – the most widely recognised and respected global
certification possible. We’re proud to be welcomed into WWF’s
In today’s fast paced, competitive business environment, it
(World Wildlife Fund) Global Forest and Trade Network (GFTN).
would be easy to cut corners in the way we do business – the
This network links more than 300 companies, communities,
way we source our raw materials, the way we look after our
NGOs and entrepreneurs in more than 30 countries around the
people and our contribution to the community. At Kimberly-Clark
world with the aim of creating a new market for environmentally
we don’t cut corners. Sustainability is at the core of how we
responsible forest products and helping to ensure that millions
do business.
of acres of forests are independently and credibly certified.
This provides a guarantee that forests are well managed and
It might also be said that values like being ‘caring’, ‘accountable’
that products come from legal and sustainable timber harvests.
and ‘authentic’ are old fashioned or clichéd. However, in
hospitals where Hospital Acquired Infections can be life or
I’m particularly proud of our people who went out into the
death issues, or trusting that the materials in your baby’s
community and volunteered their time. These are the same
nappy are safe or the tissues and toilet tissue you use are
people who, when floods, fire and earthquakes struck, worked
made from ethically sourced fibres, not precious forests, they
tirelessly to get our essential products into the hands of those
are as relevant today as ever.
in desperate need. I would like to thank them for ‘Walking the
Talk’ and sharing our vision to lead the world in essentials for
Consumers and business customers alike are looking for
a better life.
brands they can trust and companies who are accountable for
their actions and care enough to make a difference. We take
Glen Watts
seriously our role in ‘Walking the Talk’, and make a simple
Managing Director Kimberly-Clark Australia & New Zealand
promise: to actually do what we say we will.
The importance of recognisable brands and companies you
can trust becomes even more important with the proliferation
of online shopping and the growth of ebusiness. Cross country
borders are rapidly disappearing, clouding the chain of custody
and, while exciting, greater choice can also lead to greater
confusion. People are looking for clear signposts to point them
in the right direction to make purchases in balance with their
values and ethics.
It has to be said much of this growth is being driven by price.
And while prices and margins are being driven down, down, so
too are precious resources, often with environmental, social and
economic impacts. As responsible corporate citizens we need to
03
01
MaNaGING
ESSENTIaL
RESOURCES
OUR ENVIRONMENT
FORESTRY
Our global Environmental Management System (EMS) is based on the world recognised ISO 14000 standard. We have formal and
FOREST CERTIFICATION
active procedures to manage key environmental aspects including: energy, water use and lower environmental loads in wastewater,
air and solid wastes.
See how far we’ve come in 2010
Aspirational objectives
Our global policy is for all wood and fibre supplies used in our
An average of 90.9% of all fibre used in making our tissue
products to be accredited to a recognised forest management
products made in Australia is certified with an international
scheme which is independently certified or audited.
forestry standard. This graph below shows the certified
percentage of each fibre source.
All wood supplied to our Tantanoola Pulp Mill is certified to
Progress against objective
To reduce Millicent Mill’s water use to meet process-specific
Water usage increased slightly over the previous year and is
benchmark targets by end 2014 (NB: the water use targets
above the aspirational target.
the Australian Standard AS 4708, which is a key part of the
The small amount which has not been independently certified
Australian Forestry Standard .
in Australia is generally from small holdings where certification
1
is not practical. In this case, certification is conducted by
independent auditors accredited to the relevant national forestry
vary with production process. Benchmarks for each process
standard for these sources.
are 30 kL/t tissue, 60 kL/t thermomechanical pulp, 75 kL/t
bisulfite pulp).
Reduce BOD load (Biological Oxygen Demand) in
BOD is 14% above 2014 target.
wastewater discharge to Lake Bonney by 15% by 2014
i.e. from 113 t/annum to 96 t/annum.
Reduce TSS (Total Suspended Solids) in wastewater
Levels still remain below our 2014 target.
discharge to Lake Bonney by 15% by 2014 i.e. from 198
tonne/annum to 168 tonne/annum.
Ensure greater than 90% of virgin wood and fibre sources
90.9% of our virgin fibre is certified under PEFC or FSC; both
are certified to a recognised forest management system
being recognised forest management systems, thus meeting
by 2010.
our 2010 target.
Decrease carbon intensity (i.e. tonne CO2 / tonne paper
Carbon intensity has reduced by 2.7% in the last 5 years.
product) by 2.5% in 5 years.
51%
24.2%
15.7%
6.4%
Forestry SA Pine, certified
South America Eucalypt, certified
Reduce percentage of landfilled waste by 0.25% per year
Our total landfill disposal in 2010 was 1.8% of total waste
(3.5% of all manufacturing wastes were landfilled in 2006).
generated. Total mill waste generated was 64,777 tonne,
Reduce waste production from 69,300 tonne in 2004/5 to
3.8% above our stated aspirational objective.
less than 62,400 tonne in 2009/10.
North American Pine, certified
Environmental risks are identified by regular, annual appraisals of our operations, processes and products; and irregularly in
response to outside concerns and issues. Key environmental data is logged centrally on Kimberly-Clark’s sustainability database
and analysed to continually improve performance to achieve or maintain world’s best practice benchmarks.
Forestry SA Pine, not certified
1
06
Sustainability Report 10
Australian Forestry Standard Limited – www.forestrystandard.org.au
07
OUR FIBRES MEET THE FOLLOWING
FORESTRY MaNaGeMENT SCHEMES
aND CERTIFICaTION:
•A
ustralia (Softwood Radiata fibre)
AS 4708 (Australian Forestry Standard)
•S
outh America (Eucalypt fibre)
CERFLOR, NBR 14790:2005
• North America (Softwood fibre)
CAN/CSA Z809-2002
•F
orest Stewardship Council (FSC): We give
preference to wood fibre from FSC certified suppliers
where it is available and meets product performance
requirements and competitive market conditions
•P
EFC (Program for the Endorsement of Forest
Certification Schemes)
For more details on forestry, please visit: www.kca.com.au
GREENhOUSE GaS
EMISSIONS & BIO-ENERGY
We maintained our use of greenhouse neutral energy at over
Note: In years to 2008 the calculation used constants supplied
30% of total energy at Millicent and Tantanoola. This energy
by industry associations, whilst for years 2009 and 2010 we
comes from burning the lignins (‘glues’ holding raw wood fibre
have used the constants in the ‘OSCAR’ reporting system,
together) extracted from the wood during the pulping operation
which is an integral part of meeting the National Greenhouse
at Tantanoola Mill.
and Energy Reporting (NGER) Act 2007.
Graph 1 (over page) shows carbon intensity2 has decreased by
6% in the 2010 full year against the previous year as a result of
implemented programs.
2
Carbon intensity is measured as CO2/tonne of tissue and fluff pulp production
09
Graph 3.
4.00
600000
3.50
500000
3.00
400000
Kg/Year
Tonne CO2 /t (Fluff Pulp + Paper)
Graph 1.
CO2 intensity of tissue production
(CO2/tonne (paper + fluff pulp))
2.50
2.00
TSS
BOD
300000
200000
1.50
100000
1.00
0
0.50
2004
2005
2006
2007
2008
2009
2010
Year (Calendar*)
0.00
2004
2005
2006
2007
2008
2009
2010
Year (FY)
Water use and loads in wastewater
Graph 2.
Graph 3 shows the continuing trend in BOD3 and TSS4 loads.
BOD load reduced by 8.9% from last year whilst TSS has
These are key qualities when mill wastewater mixes with water
increased by 28% over the previous year as a result of process
in Lake Bonney, located in southern South Australia.
changes but is still 7% lower than the 2014 target.
•T
oo much BOD lowers the oxygen levels in water, which can
Average colour (Graph 4) being discharged in 2010 showed
limit aquatic life
• Total Suspended Solids (TSS) reduces light in the water and
12000
160
10000
140
8000
120
Hazen Units
180
4000
Average colour in
discharge of treated wastewater
200
Water Use
6000
completed improvement projects.
can lower biological growth
14000
2000
0
a 20% improvement over the previous year as a result of
Graph 4.
Annual water use, combined
Millicent + Tantanoola mills
16000
ML Water/Year
Loads of BOD & TSS in discharge
of treated wastewater
Colour
100
80
60
2004
2005
2006
2007
2008
2009
40
2010
20
Year (Calendar*)
0
Due to operational reasons across our tissue assets water usage increased by 3% over 2009.
2004
2005
2006
2007
2008
2009
2010
Year (Calendar*)
BOD = Biological Oxygen Demand
TSS = Total Suspended Solids
* Reporting period has been changed from Financial Year (FY) to calendar year for all years graphed
3
4
10
Sustainability Report 10
11
WaSTE REDUCTION &
LaNDFILL aVOIDANCE
CaSE STUdY
FOREST STEWARDSHIP COUNCIL (FSC) CERTIFICATION FOR PULP
Globally, FSC is the most recognised certification, and ensures that forests meet a set of global standards for
ecologically, socially, and economically responsible forestry. The FSC certification is supported by key environmental
NGOs such as Greenpeace, The Rainforest Alliance and WWF. It is also the preferred certification for Kimberly-Clark
At Kimberly-Clark, we work continuously to minimise waste at all stages of the product cycle. This can reduce both the use of
fibre sourcing globally.
natural resources and our costs. Additionally, we aim to avoid wastes to landfill. This year we diverted 98.2% of wastes from
landfill, an improvement of 0.7% from the previous year and exceeded the annual improvement target of 0.25%. In 2010 only
In 2010 Kimberly-Clark Australia achieved FSC certification for the control of fibre sources used in most of our tissue products.
1.8% was sent to landfill compared to 5.6% in 2003.
we know exactly how our fibre is being handled at all points of contact and exactly where it’s coming from. At the end of 2010 we
70000
4.0
% Waste landfilled
66000
3.5
64000
2.5
62000
2.0
60000
1.5
58000
1.0
56000
0.5
54000
0.0
2005
2006
2007
2008
2009
2010
Year (Calendar*)
The global forest
policy K-C now
HAS in place is the
gold standard of
behaviour in the
area of sustainable
forestry practices.
12
WWF’s GLOBAL forest & TRADE NETWORK (GFTN)
4.5
Tonne waste generated
68000
Tonne Waste Generated
sourced 26.9% of our total Family Care fibre from FSC certified sources.
Percent of waste sent to landfill
and total waste generated
st Campaign
Scot t Paul, Fore
eenpeace USA
Director for Gr
In 2009 in the US, Kimberly-Clark began collaborating with WWF’s Global Forest & Trade Network (GFTN), which
% Waste landfilled
Graph 5.
We’ve been awarded ‘Chain of Custody’ certification ‘Mixed Sources’ meaning not only do we source fibre from ethical sources,
promotes responsible forest management and trade to reduce the impacts of the pulp and paper sector and conserve the world’s
valuable and threatened forests. In 2010 Kimberly-Clark Australia became a member of GFTN and we’re looking forward to
collaborating with WWF during 2011 to celebrate and raise awareness of the United Nations’ ‘International Year of the Forests.’
GREENPEACE
Sustainability Advantage Program
In 2010, Kimberly-Clark Corporation in the US celebrated
Kimberly-Clark has long recognised that good
the one year anniversary of signing its historic agreement
environmental performance reduces risk, lowers costs
with Greenpeace.
and improves productivity.
In the first year of our partnership, Kimberly-Clark reached its
This year we participated in an external benchmarking program,
goal of increasing the use of recycled and FSC certified fibres
becoming a member of the Sustainability Advantage Program,
in its North American tissue products; Greenpeace’s leadership
a business support service initiative from the Department of
spoke with Kimberly-Clark’s executive leadership for the first
Environment, Climate Change and Water NSW (DECCW).
time; and the partnership became a global model for
corporations that produce products made with wood fibre.
As a member of this program we have undertaken a formal
diagnostic investigation so that we can better understand
‘I believe that Kimberly-Clark is exceptionally well-placed
our achievements around sustainability, evaluate our current
for the future,’ said Scott Paul, Forest Campaign Director for
environmental performance and rank possible initiatives
Greenpeace USA, to a crowd of more than 100 Kimberly-Clark
into projects to manage our future working towards a better
employees in Roswell, Georgia. ‘The global forest policy you
environment as well as adding business value.
now have in place is the gold standard of behaviour in the area
of sustainable forestry practices.’
13
Chris’s
‘sea-change’
has yielded
startling
results,
with the mill
achieving its
Kimberly-Clark
vision 2010
benchmark
in energy
usage two
years ahead
of time in
2008.
spotlight on chris schlegl sustainability champion
In 2005, KCA veteran of 36 years, Christian Schlegl moved from
And the momentum continues. The mill is beating its 2009 results
a career spanning many and varied engineering roles to a role
based on a 2010 moving annual total and Chris is still trialling new
focused on sustainability at the Ingleburn Mill.
initiatives with promising results ahead. On any day, Chris is literally
‘Walking the Talk’, monitoring the site measuring fan speeds,
Chris’s ‘sea-change’ has yielded startling results, with the mill
reading gas meters or meeting with plastics and cardboard
achieving its Kimberly-Clark vision 2010 benchmark in energy
recyclers in his continuous pursuit of sustainable practices.
usage two years ahead of time in 2008.
The mill has also been proud to host other FMCG manufacturers
In fact since 2005, when Chris took up the role, compared with
to benchmark practices at Ingleburn. Chris was also consulted
2009 the mill has recorded:
recently for his counsel on an imminent effort to reinvigorate waste
•2
5% improvement in energy efficiency
recycling in US personal care mills.
•1
7% reduction in carbon emissions
•4
8% reduction in waste-to-landfill
The mill has significantly improved its sustainability credentials,
•2
1% reduction in solid waste for every one thousand
lowered its costs and Chris has cleaned up all targets set before
nappies produced
him. The results are a win from every angle and provide proof
• Of this solid waste, 90% is recycled
sustainability and profitability can exist in harmony.
sustainable packaging australian packaging covenant
We’re always looking at ways to make our packaging more
Kimberly-Clark Australia was one of the founding partners of
sustainable by reviewing and optimising packaging materials,
the National Packaging Covenant (now called the Australian
staying at the forefront of new technology and recycling packaging
Packaging Covenant), a voluntary initiative set up in 1999 by
waste at all our production sites.
Government and Industry to reduce the effects of packaging
on the environment.
In 2010 we;
• Diverted 94% of onsite packaging waste from entering landfill
through recycling, a 4% improvement on 2009
• Diverted 784 kg of film from landfill due to a 2.3% reduction in
Kimberly-Clark is also a signatory on the New Zealand Packaging
Accord, which operates under similar principles to the Australian
Packaging Covenant.
nappy bag weight for Huggies Newborn, Infant and
®
Crawler nappies
• Saved approximately 10,000kg of the board used to make up the
glue lap on jumbo shippers
• Reduced Kimberly-Clark Professional toilet tissue poly bundle
film by 25%, saving 21,200kg of film per annum
• Reduced Viva® film by 20% saving 36,875 kg of film following the
completion of the blown film project
15
02
ESSENTIAL
BRANDS,
SUSTAINABLE
PRACTICES
®
REdUCE
TOdaY
*
We believe education
a huge role in lower plays
ing the
environmental impac
our activities as we t of
l l as
those of our custom
e rs .
Reduce Today, Respect Tomorrow* is Kimberly-Clark Professional’s approach to sustainability. It begins with the understanding
that the way we use resources today shapes the world of tomorrow. It has led us to focus on reducing consumption at every stage
of the product life cycle from design to disposal. We believe education plays a huge role in lowering the environmental impact of our
activities as well as those of our customers. In 2010 the main focus of the Reduce Today, Respect Tomorrow* campaign was around
educating our customers via an interactive quiz.
Since the successful launch of the program in Australia in 2009, the Reduce Today, Respect Tomorrow* program has been rolled
out to all eleven countries across the Kimberly-Clark Asia Pacific region, with the Philippines being the final country to implement it
in Quarter 3 2010.
The next step is to continue to communicate the Reduce Today Respect Tomorrow* message to our customers using video and
printed materials and to develop a scorecard system to measure the overall success of the program. We’re also looking at ways
we can integrate Design for the Environment (DfE) principles into the product development/research and engineering process.
This ensures product development is in line with the Reduce Today, Respect Tomorrow* philosophy.
RESPECT
TOMORROW
*
Image from the 2010 Reduce Today, Respect Tomorrow* campaign.
19
Working together for
a better tomorrow
aTTRaCTING NEw CUSTOMERS
INTO NEW ZEaLaND
Educating and engaging customers - sustainability video quiz
ECO CLEANING SERVICES – NEW ZEALAND
http://www.kcprofessional.com.au/reducetoday.asp
Eco Cleaning Services is a commercial cleaning contractor whose
The Reduce Today, Respect Tomorrow* message is resonating well with our customers and their distributor partners as well as
vision is to be 100% environmentally friendly across their business.
our internal sales teams. Most importantly the life cycle model is proving a simple yet powerful tool to explain our sustainability
After hearing about Reduce Today, Respect Tomorrow*, they saw
credentials and encourage participation.
an opportunity to reach their goals. Today they proudly offer premium
quality products while being associated with a leading global
We invited 370 customers and distributor sales representatives to participate in the Kimberly-Clark Sustainability Video Quiz asking
organisation with a shared commitment and approach
a series of questions related to the key messages and principles of Reduce Today, Respect Tomorrow*.
to sustainability.
Over a third of the people invited took the quiz and there were 627 visits to the Reduce Today, Respect Tomorrow* page at
www.kcprofessional.com.au. The success rates for those who took the quiz were also high with only 34 out of the 660 questions
answered incorrectly.
To continue to share our sustainability story the quiz remains on the KCP website and is now open for all visitors to take part in.
http://www.kcprofessional.com.au/resources/environment/sustainability-video.asp
Every time new business is won our environmental positioning
comes into play and the Reduce Today, Respect Tomorrow* story is easy
to communicate with simple messages that people really understand.
Supporting UNICEF Australia’s Water and Sanitation Appeal
FAIRFAX NEW ZEALAND – RAGS TO RICHES
Kimberly-Clark Professional continues to work closely with
hospitals across Australia to educate hospital workers on the
Like many industries, the printing business has been under pressure to reduce its carbon footprint. Switching from rags to
importance of hand hygiene compliance in order to help reduce
Kimberly-Clark Professional’s WYPALL* X80 Wipers not only saved Fairfax New Zealand money, but also significantly reduced
the spread of Healthcare Associated Infections (HAIs). Each year
their carbon footprint.
around 200,000 cases of HAIs occur in Australia contributing
to more than 7,000 deaths*. Often, simple procedures, such as
When large businesses look at ways to reduce their carbon footprint, they often look for major changes rather than considering
correct hand washing, go a long way to reducing the spread of
the benefits of consumable products.
these infections.
During the 2010 International Infection Prevention Week in
October, we ran a hand hygiene campaign encouraging Health
Care workers to get serious about the issue. The program included
a donation to UNICEF Australia’s Water and Sanitation Appeal for
every pledge made on the KCP Hand Hygiene website committing
to good hand hygiene practises.
Following the success of the 2010 campaign, we will work more
closely with UNICEF Australia in the lead-up to the 2011 Infection
Prevention Week in order to raise more money and encourage
greater awareness of correct hand hygiene.
* According to the Commission on Safety and Quality in Health Care
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Sustainability Report 10
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21
KIMBERLY–CLaRK
HEaLTh CaRE
Kimberly-Clark Health Care is a leader in infection prevention
that strives to deliver both the highest quality products and
highest sustainability standards for our customers. Our
products and solutions, backed by our customers and our
tailored education programs, help manage and prevent major
clinical issues.
Manufacturing to Market
Increasingly, health providers are looking to improve the
environmental and social outcomes of delivering patient
care and this means incorporating sustainable management
practices into their supplier evaluation.
As Kimberly-Clark both manufactures and markets products
used to help reduce the risk of infection we are able to
maintain strong control over the design, raw material sourcing,
manufacturing and transportation of our products. This ensures
we meet the highest standards of sustainability practice such
as achieving zero past waste at our Albury Mill, manufacturer
of KIMGUARD* Sterile Wrap.
Kimberly-Clark Education Foundation
Kimberly-Clark has a long history of education – whether it
be teaching young women about their bodies, teaching mums
about caring for their babies or working with health care
professionals on the front line of infection prevention providing
ongoing educational support to reduce the risk of Healthcare
Associated Infection (HAI) in hospitals.
In 2010 we introduced the Kimberly-Clark Education Foundation
as a way to connect with professionals in the healthcare
community. Our aim was to educate them to ensure they remain
at the forefront of best practice and industry trends.
Almost 500 healthcare professionals from sterile supply,
operating room and infection control departments attended the
18 sessions offered across Australia during the 4th quarter
of 2010.
As a result of its success, the Kimberly-Clark Education
Foundation will expand in 2011 to include more cities in both
Australia and New Zealand.
Reducing Waste
We’re also helping hospitals to reduce their waste. In 2010
we introduced a new cardboard case configuration for
our Albury manufactured KIMGUARD* Sterile Wrap. With
increased recycled material content and reduced weight, the
new sustainable packaging continues to provide strength and
durability to protect the KIMGUARD* Sterile Wrap while at the
same time reducing the impact on the environment.
Similarly the new MicroCool* gown fabric is now 18% lighter
than before yet it still maintains the same level of protective
performance while reducing hospital waste post-use.
22
As Kimberly-Clark both manufactures
and markets products used to
help reduce the risk of infection
we are able to maintain strong
control over the design, raw materi
al
sourcing, manufacturing and
transportation of our products.
Sustainability Report 10
03
ESSENTIaL
RELaTIONShIPs
ESSENTIAL
RELATIONSHIPs
ESSENTIAL
PEOPLE
ESSENTIaL PEOPLE
One K-C, our global operating philosophy, defines our vision,
our One K-C vision. We know effective leadership is critical
strategic approaches and values. It continued to inform and
to engaging and enabling employees by setting expectations,
guide our efforts throughout 2010.
clearing obstacles, managing performance and creating
an environment where employees can be involved, valued
By following the four strategic approaches of One K-C we will
and empowered.
achieve our vision to ‘Lead the world in essentials for a better
life’. The first approach centres on our people and the difference
The survey results provide insights to those accountable for
we can make together.
employee performance. Team Leaders use the results to involve
employees in action planning and help their teams achieve
‘Unleash the Power of People’ commits us to continue our focus
increased levels of performance. The critical part of the process
on leadership development, employee professional development
is the action plans that Team Leaders develop to address the
and attracting and retaining talent to our organisation.
priority areas to improve engagement and enablement.
We believe that if we continue to unleash the power of our
Kimberly-Clark - A High-performing
company (Hay Group - 2005-2009
Five Year Norm)
people, together we will create a stronger, faster, more efficient
and more competitive Kimberly-Clark.
Input to Action survey
and action plans
At Kimberly-Clark we aim to keep our people engaged,
motivated and happy so they continue to achieve great
results and drive the success of our business.
The biennial ‘Input to Action’ survey is a process not an
event. It’s a prelude to action and a means to understand
clearly and objectively what drives employee effectiveness
at Kimberly-Clark (employee engagement + enablement
Kimberly-Clark is considered one of the ‘high-performing
companies’ in the world based on data from a cross-section
of industries. So what makes us high-performing? According
to Hay Group who conduct our Input to Action surveys, a
high-performing company is compared to other companies on
its financial performance - its Return on Assets (ROA), Return
on Investments (ROI) and Return on Equity (ROE). Hay includes
data from over 1.1 million employees in these surveys. Typically,
high-performing companies outperform other companies across
employee engagement dimensions by 4 to 9 percentage points.
= effectiveness).
Despite operating in one of the worst economic environments
in years, Kimberly-Clark Australia had a 100% completion
rate of the Input to Action survey in 2010, showing solid
improvements on 2008 results. The global financial crisis
brought many challenges, but we’re still working toward
Two of our valued employees.
At Kimberly-Clark we aim
to keep our people engaged
,
motivated and happy so
they continue to achieve
great results and drive th
e
success of our business.
27
CaSE STUDY
CaSE STUDY
global role model program
essential coaching skills - institute of executive coaching workshop
In keeping with our vision to ‘Unleash the Power of Our People’,
To continue to develop a culture that encourages recognition,
The ongoing development of our leaders, regardless
The two-day workshop focused on the Team Leader’s
Kimberly-Clark International introduced the Role Model award in
K-C New Zealand and the South Asia Supply Chain Division
of their level in the organisation, is a critical initiative in
ability to coach their team to deliver their best for
early 2010 to emphasise the power of having a culture that both
launched a pilot Role Model Program locally. The initiative
our ‘people strategy’. All Kimberly-Clark leaders, from
Kimberly-Clark. The course took the coaching skills
allows and rewards us to unleash our talent and creativity.
proved to encourage an environment where employees
our most senior leaders down, have an objective in their
learned in the Leading Teams program (a core KCANZ
performance plan to take personal accountability for the
development program for Team Leaders) to the next
performance, engagement, attraction, diversity, inclusion
level, focusing on developing solid relationships between
and development of their teams.
the coach and the employee.
A key component of our ‘Unleash the Power of our
The plan for 2011 is to roll these Coaching Skills
People’ strategy is to build a pipeline of leaders in
workshops out to Team Leaders.
key capability areas. One of the most effective ways to
do this is to enable leaders to coach their team members.
Ross Hearne, General Manager Corporate Services,
During 2010 we worked with the Institute of Executive
who participated in the workshop, provided feedback:
Coaching to deliver a Coaching Skills workshop that
“During my many years in management I have
received very positive feedback. Mark Wynne, President
participated in a range of leadership courses however the
South Asia and at the time Managing Director Australia
Coaching Skills workshop was one of the most enjoyable,
and New Zealand, participated in the workshop with all
and thought-provoking courses I’ve ever
his direct reports.
been on. Thank you.”
are engaged and empowered to do their best.
Bob Black, Kimberly-CIark International Group President
says, ‘Our role models represent One K-C to us. They are
Due to the success of the pilot program, Kimberly-Clark New
inspirational. This award lets everyone know who those people
Zealand will now be developing a formal Role Model Program
are and how their stories set an example for all of us.’
to be implemented across all divisions. The program will
continue to promote and reinforce the practise of living our
Ten K-C International Role Model employees were selected
One K-C values.
in 2010 because they:
• Live the One K-C values each and every day
• Put our consumers and K-C first in everything they do
• Are passionate about performance and winning
•A
ctively seek out diversity of thought and ideas, working
hard to include it in the ways they solve problems and
make decisions
employee professional development
We want to develop our people, build their capability and
To deliver this strategy we are focusing on two initiatives:
create a high performance culture. This includes building
1. Educate Team Leaders on training and development
strong leadership across the organisation.
options that are available to enable them to guide their
team members effectively
We start by understanding both the needs of our people
and the needs of the business then closing the gap by
2. S
et aside one month of the year to concentrate
on career development
providing the right training at the right time.
In November 2010 we launched the Kimberly-Clark
Our strategy for employee development is twofold:
Australia and New Zealand Human Resources specific
• Design, develop and deliver (or source) the most cost-
intranet site called ‘HR & Me’, which was a critical
effective, business-relevant training and resources to
milestone to achieving the first initiative. This SharePoint
close organisational and individual capability gaps
site is a one-stop shop for all HR-related information
• Build awareness of available training across
the business
including easy access to the online learning and
development resources.
Members of our Supply Chain team.
29
essential safety
how we’re performing
We sustained a fully integrated approach to Health and Safety strategic planning led by the Kimberly-Clark Australia
and New Zealand (KCANZ) Safety Leadership Team and the KCANZ Corporate Management Team.
KCANZ continued its representation on the Global Occupational Safety and Hygiene (GOSH) teams and the South Asia Safety
Steering Committee (SASSC) to ensure alignment with regional and global health and safety strategies.
The inclusion of contractor statistics to our 2009 and 2010 figures indicates an overall increase in reportable injuries (+1) and
loss time injuries (+5). However, when you compare the number of reportable injuries for Kimberly-Clark employees (excluding
contractors), there has been a reduction year on year.
The KCANZ Safety Leadership Team continued to consult key stakeholders, both internally and externally, to set safety goals,
objectives and key performance indicators which were integrated into the Health and Safety Plans of each site throughout KCANZ.
Our Occupational Safety and Hygiene Policy (our vision) was enhanced to go beyond our employees to include contractor
and visitor fatalities, disabilities, injuries and occupational illnesses within our Kimberly-Clark facilities. This change is reflected
Leading indicators showed a favourable trend for near miss/hazard reporting and planned inspections with a decline in the number
of hazard identification and risk assessments completed. These metrics have been in place since 2003 and will be reviewed during
2011 to ensure we continue to track those activities in line with the Environmental Health and Safety Management System (EHSMS)
that will drive success.
in an adjustment to the 2009 data to include accurate year on year performance data.
management systems
Objective
Progress
Figures valid as at 31st December 2009
2009
2010
Decrease number of lost time injuries
11
16
at all Australian manufacturing sites. Millicent and Tantanoola Mills completed a Kimberly-Clark Corporate Assessment with
Decrease number of reportable injuries
24
25
performance standards.
Increase number of near miss/hazard reports
1417
1584
Increase number of planned inspections
2621
7212
Increase number of hazard identification and risk assessments
1559
1071
Our Environmental Health and Safety Management System (EHSMS) continued to provide an integrated process for improvement
only a few major opportunities for improvement identified. These were associated primarily with newly released Kimberly-Clark
training
We continued leadership training for our EHS Management
KPIs are reported monthly and other performance measures reviewed quarterly and annually.
30
The KCANZ Safety Leadersh
ip
Team continued to consult
key
stakeholders, both intern
ally
and externally, to set saf
ety
goals, objectives and key
performance indicators.
We maintain sustained compliance through formal training
System for our Australian Manufacturing Leaders with the
for Health and Safety Representatives and OHS Committee
Ingleburn Mill commencing the training in quarter one followed
members. All new employees are introduced to their OHS
by our Erskine Park Distribution Centre Senior Leaders. In
responsibilities through orientation and induction training
addition, safety interaction training rolled out in the Supply Chain
programs before undergoing job specific training and
Distribution Centres in New Zealand following the successful
assessment. Our contractors also undertake site inductions
launch in the Australian Distribution Centres during 2009.
and further job specific training as required.
Kimberly-Clark employees in training.
31
CASE STUDY
health and wellbeing
achieve and sustain zero fatalities
Our ongoing investment in a corporate health and wellness
the flu with the majority being administered by Registered Nurse
program delivered a continued increase in employees with ‘good
Immunisers from Kimberly-Clark.
Globally we’ve demonstrated continued reduction in overall
From over 200 employees engaged in the three pilots, 49
injury rates over the past decade but have not met our goal to
potential opportunities to ‘save a life’ were identified.
achieve and sustain zero fatalities as a global corporation.
The pilots were supported by a global scale communications
The new focus for safety was launched as a global pilot at
campaign launched during Safety Week in October 2010 and
Millicent Mill in December 2009 followed by all other Australian
will continue to be rolled out quarterly with targeted activities
manufacturing sites throughout 2010.
throughout 2011 and beyond.
The new focus is about raising awareness of a set of potential
At Kimberly-Clark Australia New Zealand (KCANZ) we
hazards or events referred to as ‘Sentinel Events’, most likely
encouraged employees to take part in global safety initiatives
to cause a potential fatality. Employees are challenged to
such as submitting photos to be printed on the ‘Who’s Counting
recognise them as they go about their daily routine, report them,
on You’ banner showing all the families, friends and loved
engage in potential solution development and take the belief
ones across the Kimberly-Clark world counting on people
that every ‘Sentinel Event’ recognised, reported and corrected is
coming home from work safely each day. We also adapted the
a ‘potential life saved’.
campaign locally, displaying a slide show of photos of KCANZ
employees’ families, friends and loved ones on our intranet
health’ and a reduction in the number of employees with ‘critical
health risks’ for the third consecutive year since the program’s
We recognise the importance of having happy healthy people
launch in 2007.
in our organisation. In 2010 we continued to support our people
by providing access to professional counselling through our
As part of our Influenza Immunisation Program, we vaccinated
Employee Assistance Program.
over 750 employees across Australia and New Zealand against
CaSE STUDY
know your number
during Safety Week as a reminder for our people to always put
We appreciate that reducing health risks enhances quality of life leading to happy and more productive employees. In 2010,
safety first at work.
Kimberly-Clark Registered Nurses conducted health assessments for 331 employees across NSW, Victoria and Queensland, 185
employees in South Australia and 46 employees in New Zealand checking their Body Mass Index, waist measurement, blood sugar
level, cholesterol and blood pressure.
Following the health assessments, participants were invited to take part in an online health assessment to determine the overall
health of the company and give people the chance to find out their age according to their health.
The results showed the health profile of the group of 303 employees was:
69%
20%
11%
During safety week, we
Good Health,
0-2 health risks
Medium Health,
3-4 health risks
Critical Health,
5 or more health risks
showcased photos on our
intranet of employees’
families, friends and loved
ones counting on them
being safe at work.
32
Sustainability Report 10
33
ESSENTIAL
RELATIONSHIPs
ESSENTIaL communities
We strive to support our community by supporting programs that are integral to our business, involve our employees and further
enhance the reputation of Kimberly-Clark.
ESSENTIAL
COMMUNITIES
The Kimberly-Clark Community Care program is currently focused on three areas aligned with our products and key target markets:
family, health and wellbeing, and the environment. The program is managed by Kimberly-Clark’s Community Care Consultant
and is backed up at a ‘grass roots’ level by the Community Care Ambassador network, a group of our dedicated and passionate
employees ‘Walking the Talk’ who assist in the communication of the program and strategy more broadly across the company.
As we look to 2011, Kimberly-Clark will be looking to review the Community Care program to ensure that it remains focused and
strategically aligned to our business.
See what we achieved in 2010
Objective
Progress
Achieve engagement of employees in Community Care program including:
Achieved
• Payroll giving
• Volunteer leave
• Grants program
• Matched giving
Facilitate the engagement of at least one business unit per annum with our community partners
Achieved
to utilise our resources, business networks and expertise
Kimberly-Clark employees at work in the community.
Increase our total community investment contributions ($) year on year
Achieved
Increase our total community investment contributions to 1% of post-tax operating profit by 2010
In Progress
The Kimberly-Clark Commu
nity
Care program is currently
focused on three areas al
igned
with our products and key
target
markets: family, health an
d
wellbeing, and the environ
ment.
community care
continued to
gain momentum in 2010
with a huge
increase
in the number of employees becoming
actively involved
in programs
corporate community
partnerships
children’s medical
research institute (cmri)
clean up australia
We continued working closely with CMRI on a number of
With a shared vision of a healthier, cleaner environment our
initiatives including employees’ involvement in the numerous
partnership with Clean Up Australia continued throughout 2010.
Jeans for Genes® Day activities, and the Huggies® brand and
Jeans for Genes® Day cross-promotional activities.
Ian Kiernan AO, Chairman and Founder of Clean Up Australia,
was a key speaker at the launch of our 2009 Sustainability
Our Jeans for Genes Day activities again saw a substantial
Report in May 2010. In front of employees, customers, partners,
amount raised in 2010 with over $22,700 going to the Children’s
NGOs, Government representatives and the media, he spoke
Medical Research Institute. All Kimberly-Clark sites across
about our partnership with Clean Up Australia as an example of
Australia and New Zealand participated with raffles, morning
the role of business in the bigger environmental picture saying:
®
teas, selling merchandise, team fundraising and purchasing
Huggies® Denim Design products.
‘There’s no doubt we live in a changing world and what we’ve
got to realise is as a species we have got to change what we
We also presented a cheque for $180,000 to CMRI, made up of
do in order to adjust to this changing world. We’ve got to put
our $150,000 partnership contribution as well as a donation of
yesterday’s technologies and methods behind us and embrace
$30,000 from the Huggies® brand team as part of the Huggies®
tomorrow’s. That is going to open up absolute caverns of
Nappies with Denim Designs.
opportunity to the bold and resourceful corporations. KimberlyClark is absolutely one of those. A great example of deep green
commitment to a sustainable future.’
A great example
of deep green
commitment to
a sustainable
f u t ur e .
Ian Kiernan AO
, Chairman and
Founder of Clea
n Up Australia
37
good corporate
citizenship
2010 total community
investment contribution
The Kimberly-Clark Good Corporate Citizen Program aims to raise Kimberly-Clark’s corporate profile and support the partnership
and employee participation programs. It includes cause-related marketing, research and education initiatives. In 2010 notable
initiatives in this area included:
Cash
$667,025
Employee time
$119,646
Gifts in kind
$64,500
Management costs
$141,023
Total
$992,194
®
Huggies® Brand – Children’s
Viva® Towel – National
Kleenex® Cottonelle® range –
In 2010 the total investment in community was slightly lower than 2009 largely due to the Victorian Bushfires that occurred that year
Medical Research Institute
Breast Cancer Foundation
Guide Dogs Australia
which created a significant increase in matched giving for the period.
A Jeans for Genes Day campaign
A Pink Ribbon version of the Viva
including the launch of the limited edition
paper towel twin pack was produced
Guide Dogs Australia via on-pack
Huggies Baby Wipes with Denim
as part of the Pink Ribbon promotion
communication throughout the year and
Designs pop-up tub.
in October.
a substantial advertising campaign.
®
®
®
Long standing partnership with
Employee participation
We pride ourselves on being generous supporters of Australian
In 2010, employee engagement continued through our key
charities and caring for those in need. In the past year alone,
programs like payroll giving and matched giving. We also
we have responded to over 250 requests for donations, financial
saw a significant increase in the number of volunteering hours
support and product donations through our Community Care
logged by employees.
Kimberly-Clark proudly sponsors Casey,
programs. We understand that providing the essentials means
a guide dog puppy in training.
being there when people need us.
$2,000
3,270
35
27
38
Sustainability Report 10
of grants to charities
through the Grants program
hours of volunteering
logged by employees
charities will be receiving a donation
from us through the Matched Giving Program
employees giving through
the payroll giving program
39
CaSE STUDY
CaSE STUDY
team volunteering takes off
Huggies® Nappies with Denim Designs are back!
In 2010 we experienced a marked increase in the number of
Kleenex® tissues, Kleenex® Cottonelle® toilet tissue and
teams undertaking volunteering experiences together.
tooth brushes and washing liquid to be delivered to
Barnardos for the children, young people and families
The KCNZ North Island team (Consumer, Health Care and
in disadvantaged situations.
Professional) took a day out of their busy schedules to
volunteer at Roscommon Junior School, located just behind
Glen Watts, the then Vice President Baby and Child Care and
the Auckland office. On the ‘Kleen Up With Kleenex®’ day
now Managing Director KCANZ said, ‘It was a great team day
they went to work on the neglected areas in the garden and
with a terrific sense of achievement at the end. The Barnardos
painted the play area. They planted garden beds with herbs,
Maintenance Manager was impressed with what was
vegetables and flowers, providing a wonderful opportunity for
accomplished and made special mention of the quality of the
the five- and six-year-old students to nurture and grow their own
work as a positive reflection on the character of the team.’
In support of Jeans for Genes® Day 2010, the stylish Huggies®
stylish designs. Both products were available for the same
Nappies with Denim Designs were again brought back allowing
price as regular Huggies® Nappies and Baby Wipes.
more little Aussies to ‘strike a pose’ in support of Jeans for
Genes® Day.
By purchasing Huggies® Nappies and Wipes with Denim
Designs, parents contributed to our donation of $180,000
Additionally in 2010 for the first time Huggies® Baby Wipes
to the Children’s Medical Research Institute.
were also available in cute denim-look tubs featuring two
food. To make it a day for the kids to remember, they painted the
Kleenex® brand’s SneezeSafe mural on the school’s art shed in
The year also saw fantastic volunteer efforts from:
full view of the children’s playground.
•The Consumer Advisory Service team who volunteered at the
Wayside Chapel, a local charity helping people in the inner city
In Australia the Baby and Child Care team put their painting
battling with homelessness, unemployment, drug and alcohol
skills to good use, rolling up their sleeves and completely
dependency and mental health problems
making over a one bedroom unit that Barnardos Child and
Family Welfare Service use as temporary accommodation for
families in need. They also painted a large room used for child
or vacation care for children with disabilities. The facilities were
completely redecorated in just one day!
•The Regional Services Centre (RSC) team and over 150
employees in the Consumer Sales division who volunteered
at various Ronald McDonald House Charities across Australia
•The Adult and Feminine Care Division who took the elderly
residents of the Benevolent Society’s Greenwood Cottage
out Christmas shopping
The team also donated 30 packages filled with essential
products like Huggies® nappies, wipes and change mats,
It was a great
team day with
a terrific
s e n s e of
achievement
at the end.
K-C New Zealand team volunteers at Roscommon
naging
Glen Wat ts. Ma
Z
Director, KCAN
Primary School on their ‘Kleen up with Kleenex day’.
40
Sustainability Report 10
41
ESSENTIaL
RELATIONSHIPs
ESSENTIaL consumers
We take great care to ensure the quality of all our products. We routinely screen all the materials we use via a specialist review
process prior to selection and continually monitor our consumer data for any potential issues.
ESSENTIaL
CONSUMERS
see how far we’ve come in 2010
Aspirational Objective
Progress
To ensure more than 90% of our consumer product issues
In 2010 the 90% target was achieved for all 12 months.
highlighted through our Consumer Advisory Service are
In total, 98.3% of consumers advised that they would
resolved and consumers continue to use and recommend
continue to use our products and 98.5% would recommend
Kimberly-Clark products.
KCA products to others. For 5 months of the year, 100%
of consumers indicated that they would continue to use
or recommend KCA products.
For more than 95% of our consumers to rate their
96.8% rated their experience ‘excellent’ or ‘very good’
experience as ‘excellent’ or ‘very good’ when seeking
in 2010.
assistance from our Consumer Advisory Service.
To respond to consumer email contacts and enquiries
Due to the re-launch of the Huggies® website and the
promptly. To have less than 2 days worth of total
introduction of the Kleenex® Mums website we received
outstanding emails per month.
a 5% increase in email contacts. In light of this, we
achieved our target for two out of twelve months, with an
overall average of 3.5 days. We have been working with the
North America team to improve this by training them to
assist with our emails workload.
Key consumer issues are identified through routine quality reviews by each business sector which includes reviewing all consumer
data. A resolution plan is then devised and integrated into the product development plan.
96.8% rated their
experience ‘excellent’
or ‘very good’ in 2010.
43
continuous improvement
24 hour global response to emails
With the ongoing growth of internet communication, consumer
The benefits:
response time was once again a key issue. In line with our One
• Emails can be processed externally to Consumer Advisory
K-C vision, we looked to our US colleagues in North America to
Service (CAS) in overflow situations
provide an even faster service for our consumer emails.
• Emails can be responded to quicker during peak periods
Our goal is to have KCC (North America) trained to handle
Australian and New Zealand consumer emails in peak times, i.e.
to act as an overflow back-up.
how would you rate the overall experience
when you contacted kimberly-clark?
• Training overseas colleagues as product experts is much more
effective than recruiting and training casual or temporary staff
in high demand times
The arrangement is that North America will process up to 100
emails per week to ensure their knowledge and skills are always
consumer satisfaction
survey results 2010
• Process sharing is now more open between CAS and NA
up-to-date so that if an overflow situation arises they are ready
Consumer Services which has created opportunities to learn
to assist.
and leverage from each other, supporting our One K-C vision
consumer response time
Excellent
75.3%
Good
21.5%
Fair
2.7%
Poor
0.4%
Very Poor
0.1%
emails processed monthly
Number of Contacts
3000
Completed Emails
Outstanding Emails
2500
2000
1500
1000
500
0
Jan-14
Feb-14
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Year 2010
44
Sustainability Report 10
45
CaSE STUDY
CaSE STUDY
benchmarking our customer service
when consumers talk
While our internal Consumer Satisfaction surveys continue to demonstrate high ratings, we always strive to be best in market
ensuring we offer the highest level of service to our consumers. In 2010 we actively sought out and commissioned an independent
Customer Service assessor* to assess our performance in a ‘Mystery Shopper’ exercise comparing us against our competitors
and other industry call centres. Although we recognise there is always room for improvement, we were extremely happy to find
out that we:
• Had the best ‘Average Enquiry Resolution’ at 92% of the
•Provided ‘Clearer Resolution to Queries’ (90%) than our
three contact centres, which was seven points ahead of our
closest competitor (80%), and out-performed the ‘All
closest competitor (85%) and 17 points better than the next
Companies’ on this measure (83%) by seven points
call centre (75%)
•Were ‘Courteous and Helpful’ in 97% of calls, which is a good
•‘Clarified Customers’ Needs’ 93% of the time, rating us 13
points higher than two competitors and all other companies
result. This was three points behind our biggest competitor,
which set the Benchmark result (100%), but it out-scored the
we listen
‘All Companies Average’ (86%) and the next competitor by
•Had better ‘Product Knowledge’ results (90%) than the ‘All
11 and 14 points, respectively
Companies Average’ (82%) and our closest competitor (80%)
Valuing Feedback with Thank You SAMPLES
In 2010 we actively sough
t
out and commissioned an
independent Customer Serv
ice
*
assessor to assess our
performance in a ‘Mystery
Shopper’ exercise.
In 2010 we turned our product problems into opportunities to communicate with our consumers.
The results of our Consumer Satisfaction surveys identified a need to show our consumers that we value their
feedback. We also saw an opportunity to share our other products with consumers through sampling. Our
Consumer Marketing divisions saw the value in this innovation as a way to show our consumers that we care and
also share other products with them.
Mark Wynne, President South Asia, listens to
consumer calls as part of the ‘walk a day in my
* Customer Service Benchmarking Australia
46
shoes’ program.
Sustainability Report 10
We developed a ‘thank you’ pack
and implemented a process to
distribute the gifts to consumers
who provided feedback.
what our consumers say about us
“Great after market service. Well done
Kimberly-Clark. You are what customers want.”
“I think that you have come out
of this looking great!! I called
to let you know 3 nappies were
faulty without any expectations
of free nappies. The compensation
of a whole pack of nappies was
just wonderful!! The lady on the
phone was just lovely and I will
continue to buy Huggies® after
such great service. Thanks again.”
48
Sustainability Report 10
essential feedback
Here is some verbatim consumer feedback
provided to our Consumer Advisory Service.
“Your staff were caring,
considerate, polite and patient.
I thank you all.”
“Very friendly staff with a genuine passion
for the product. Great service being given
replacements. Overall excellent product
(had issues with one design).”
49
04
ESSENTIaL
GOVERNaNCE
ESSENTIaL governance
GOVERNaNCE FRaMEWORK
The company’s corporate governance framework flows from a set of policies adopted by the Board of Kimberly-Clark Corporation
Our global Code of Conduct commits the company and its employees to:
in 1994. These policies guide the Corporation on matters of governance, including Director responsibilities, Board committees
and their charters, Director independence, Director qualifications, Director compensation and evaluations, Director orientation
• The protection and ethical use of assets
and education, Director access to management, Board access to outside financial, business and legal advisors and management
• Good citizenship and compliance with government law and regulations
development and succession planning.
• Ethical dealings with our customers, suppliers, competitors and government
• The production of financial records and reports which present our activities and transactions fairly and accurately
see how far we’ve come in 2010
Code of Conduct training
Objective
Progress
No Code of Conduct violations.
There were three complaints via the Code of Conduct
Operating with integrity is central to the culture at Kimberly-Clark. We work hard to protect the reputation of our company and our
Hotline during 2010. All were determined to be
unfounded allegations.
people. In 2010 the Human Resources Team designed and rolled out Code of Conduct training to help employees understand the
Code of Conduct to ensure we maintain a respectful workplace. The interactive, case study based program was piloted at the WA
Sales office and Distribution Centre, followed by a large scale implementation at various sites. In less than three months we trained
282 permanent employees at Milsons Point, 305 at Millicent, 30 at Ingleburn and 28 in New Zealand. Training for all remaining
Maintain a ‘well controlled’ internal control environment
Internal audit reports (including Sarbanes-Oxley Act
(as judged by Kimberly-Clark Corporation Audit) producing
requirements) report well controlled business units.
financial records and reports that conform with internal
External audit reports are free of qualification or exception.
corporate financial policies and external legal and
regulatory requirements.
Australian Sales offices, Distribution Centres and the Albury Mill will be conducted throughout the first half of 2011.
MONITORING
Compliance is regarded as an operational responsibility rather than that of compliance specialists. In addition, compliance issues
No Trade Practices incidents, e.g.
To the best of our knowledge and belief there have been no
– Product performance
incidents of any significance involving customer complaints
– Business behaviour
about products and service or involving employees in
come to attention in any one of three areas: the Consumer Advisory Service, Legal or Corporate Financial Services and as the
subject of periodic management reporting. The Internal Control Steering Committee has the charter to monitor the status of internal
control reviews and audit remediation.
anticompetitive or unconscionable conduct in 2010.
No adverse tax assessments.
Tax returns for 2009 were assessed as lodged.
IDENTIFICATION AND ENGAGEMENT
As part of a wider review of large tax payers, The Australian
Tax Office (ATO) has conducted a ‘specific review’ of
Whistle blowing: Employees are able to report breaches on any issue of conduct via an anonymous whistle blowing facility.
our 2007, 2008 and 2009 tax returns in relation to the
circumstances of investments in Brazil and Indonesia
Performance management: Performance discussions are conducted at least three times per year to ensure that areas of
subsidiaries and interest deductions on borrowings for that
improvement are addressed in a timely manner.
purpose. We await a decision by the ATO on whether the
Tax: We maintain a cordial relationship with the ATO being a large tax payer and adopt a conservative approach to the
matter will proceed to audit.
Our Suppliers must be able to demonstrate Environmentally
In 2010 Supplier Social Compliance Standards were
and Socially responsible behaviour in their operations.
developed for suppliers globally. The new standards
By 2010 our ‘top 20’ suppliers by value will be audited
to be rolled out in 2011 communicate K-C’s values and
for compliance.
commitments, and emphasise the importance of responsible
interpretation of tax law as it relates to our obligations in respect of all tax matters.
workplace policies and practices that comply with applicable
employment laws and regulations, occupational health and
safety, and environmental regulations.
Our company’s governance has its foundation and strength in the governance practices of our parent company, Kimberly-Clark
Corporation. The scope of this Sustainability Report is limited to the operations of Kimberly-Clark in Australia and New Zealand.
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GOVERNaNCE STRUCTURE
The key governance and decision-making body of Kimberly-
The requirement of Corporations Law for each company to have
Clark Australia is the Corporate Management Group (CMG)
at least one director has been addressed by appointing the
headed by the Managing Director. Membership of this body is
Managing Director and General Manager, Finance as directors
overseen by Kimberly-Clark Corporation. Other key governance
of each company in the Australian group. The statutory boards
bodies which either report to the CMG or act in parallel, include
are not decision-making bodies. The KCA Board Minutes are
the South Asia Safety Steering Committee (SASSC), Australia
used as the formal governance record for K-C operations in
& New Zealand Safety Leadership Team (ANZSLT) and the
Australia and New Zealand.
Kimberly-clark australia
& new zealand policy
POLICY NO: CAGP-42-02
ISSUE DATE: 3 October 2007
Kimberly-Clark Australia Pty.
Limited Sustainability Policy
THIS POLICY APPLIES TO All Kimberly-Clark
employees in Australia/New Zealand
RECOMMENDED BY General Manager,
Corporate Services, Ross Hearne
AUTHORISED BY Managing Director, Mark Wynne
Internal Control Steering Committee (ICSC) whose membership
includes representatives from the CMG.
PUBLIC POLICY
1. PURPOSE
The purpose of this policy is to state Kimberly-Clark
Australia’s commitment to socially and ethically responsible
conduct of its operations.
2. SCOPE
The company’s Code of Conduct prohibits undisclosed
The company expects all employees to recognise when
donations to political parties. However, the company has not
activities away from work may conflict with the company’s
donated to political parties in Australia for more than 10 years
business interests and to avoid such conflict. This includes
and is unlikely to do so. Globally, the company does set aside
investing as well as consulting and employment activities.
1.25% of net profit each year for donations to community
organisations in which staff are involved. The distribution
of funds is decided by a staff committee appointed by the
Corporate Management Group.
TaX CONTRIBUTION
The ATO rates companies in accordance with the risk they
In 2009/10 the level of taxes borne by the company exceeded
present to revenue collections as represented by compliance
$45,000,000 of which 70% was company tax. In addition, the
history and the strength of controls designed to capture tax
company collected tax in the form of employee PAYG and GST
obligations. The company is rated by the ATO as a low risk.
amounting to more than $155,000,000 in approximately 1/4:3/4
proportions respectively. This places us in the median range
for top 100 corporate tax payers and collectors. This position is
expected to be maintained in 2010/11.
This policy applies to all Kimberly-Clark Australia
operations at all administration, sales, supply chain
and manufacturing sites.
3. GUIDELINES
– Kimberly-Clark Australia understands that it has an
obligation to its customers, its suppliers, the consumers
of its products, the community and its shareholder,
Kimberly-Clark Corporation, to operate in a socially
responsible manner.
– To meet its obligation to the parent Company, KimberlyClark Corporation, Kimberly-Clark Australia must comply
with all its Parent Companies’ Policies including those
referring to Sustainability. These Policies are also policies
for Kimberly-Clark Australia.
– Kimberly-Clark Australia believes that corporate social
responsibility and sustainability is best achieved by
embedding the following into all operational aspects
of its business:
a) core values;
b) corporate codes of ethics; and
c) policies, procedures and practices that deliver benefits
to the Company’s people, to customers, to consumers,
to the community and to the environment and that result
in responsible and ethical business conduct.
– Kimberly-Clark Australia commits to the ongoing,
continued improvement of business policies, practices
and strategies that impact and/or result in productive
and positive outcomes in each of the following key areas:
- The consumers of our products
- Our customers
- Our suppliers
- Our people;
- Our community;
- Our environment; and
- Our business operations.
4. IMPLEMENTATION
Implementation of this policy is done through the
mechanism of Policies and Procedures. Examples are
shown below although the list is indicative only and other
Policies and Procedures relevant to the areas listed in
Section 3 will apply as applicable to a given situation.
– Occupational Health and Safety
– Corporate Governance
- Internal Control
- Code of Conduct
- Privacy
- Trade Practices Compliance
– Human Resources – some of the more significant
areas covered are:
- Personnel Practices
- Diversity
- Discrimination and Harassment
- Flexible Working Arrangements
- Human Resources Development
– Product Quality
- Quality Policy Statement
- Product Review – Board Levels
- Quality System – Implementation
– Community Care – KCA Community Care Programme
- Employee
– Achievements-Acknowledgement
– Environment
- Corporate Environmental Policy
– Supply Chain
- South Asia Purchasing Instructions
For further information on
Kimberly-Clark Corporation
sustainability practices & policies
including:
– Product Safety policies
– Environmental policies
– Employment policies
– Ethical sourcing policies
– Community policies
visit www.kimberly-clark.com/our_responsibility/reporting/policies.aspx
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what we’re
doing globally
Cross country borders
are rapidly disappearing,
clouding the chain of
custody and, while exciting,
greater choice can also lead
to greater confusion.
Stringent Supplier Social Compliance Standards
In 2010 Kimberly-Clark established a set of Supplier Social
and emphasise the importance of responsible workplace
Compliance Standards to set standards on doing business with
policies and practices that comply with applicable employment
suppliers who share our values and commitment to sustainable
laws and regulations, occupational safety and health, and
business practices in the areas of human rights, workplace
environmental regulations.
safety and environmental issues.
For more information please visit
Our new Supplier Social Compliance Standards better
www.kimberly-clark.com/our_responsibility/people/suppliers
People are looking for clear
signposts to point them in
the right direction to make
purchases in balance with
their values and ethics.
communicate our values and commitments to all our suppliers
Independent Sustainability Advisory Board of Experts
In 2007 Kimberly-Clark sought to establish a Sustainability Advisory Board of objective, external members with expertise
in specific areas of sustainability to provide strategic guidance on social, environmental and economic issues.
In October 2010 we welcomed three new members to the Sustainability Advisory Board: Malini Mehra, Ricardo Young Silva and
Andrew Winston, each bringing with them commendable credentials.
‘We’re extremely pleased with the addition of such distinguished and talented sustainability leaders to our advisory board and look
forward to benefitting from their wealth of knowledge,’ says Suhas Apte, Vice President of Global Sustainability at Kimberly-Clark.
recognisable brands
and companies you
can trust are more
important today than
ever before.
‘We constantly challenge ourselves to deliver sustainable solutions that make a difference in our global communities, and nothing is
more significant in that endeavour than the candid feedback and guidance from our Advisory Board.’
Kimberly-Clark’s Sustainability Advisory Board Members:
• Malini Mehra, founder and CEO of the Centre for Social
• George Carpenter, President of Fraser River Strategies and
Markets, a non-profit organisation that has pioneered work
the former director of Corporate Sustainable Development at
on sustainability and corporate responsibility in India and its
Procter & Gamble
Diaspora since 2000
• Claude Fussler, former Vice President of Dow Chemical and
• Ricardo Young Silva, former Executive President of Ethos
Institute, a leading corporate social responsibility organisation
former director of Stakeholder Relations at the World Business
Council for Sustainable Development
dedicated to mobilising, encouraging and helping companies
manage their business in a socially responsible way
• Timothy Smith, Senior Vice President, Environment, Social
and Governance Group at Walden Asset Management
• Andrew Winston, co-author of the bestseller Green to Gold,
author of Green Recovery, and founder of Winston EcoStrategies, an organisation that helps leading companies use
• Ken Strassner, former Vice President, Global Environment,
Safety, Regulatory and Scientific Affairs at Kimberly-Clark.
environmental strategy to grow and prosper
® Forest Stewardship Council
® World Wide Fund for Nature
™ World Wide Fund for Nature Australia
®/* Registered Trademark/Trademark Kimberly-Clark Worldwide, Inc. © 2011 KCWW
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Sustainability Report 10
JEANS FOR GENES is a Registered Trademark of the Children’s Medical Research Institute.
www.kca.com.au
Australia & New Zealand